Oak Ridge City Council OKs DOE water contract 6-1

Thursday

Dec 13, 2012 at 9:23 PMDec 13, 2012 at 9:24 PM

Oak Ridge City Council approved a resolution to extend and modify the current water services contract between the city and the Department of Energy to set a new pricing structure for potable and non-potable water from the city.

by Beverly Majors

Oak Ridge City Council approved a resolution to extend and modify the current water services contract between the city and the Department of Energy to set a new pricing structure for potable and non-potable water from the city.

Council voted 6-1 at its Dec. 10 meeting, following a lengthy discussion about the contract, which would extend the contract for three years and end on Dec. 31, 2015.

Newly elected Council member Trina Baughn cast the lone “no” vote.

In previous years, the city has charged DOE for both potable and non-potable water based on a volumetric rate per thousand gallons of use, but the new contract calls for a fixed cost of $2,075,000 to be billed monthly.

The amount was based on a review of the city’s operation and maintenance costs over the previous years with the total costs being apportioned based on the split of DOE flow and city flow.

According to city information, DOE currently uses 53.5 percent of the total water used and the city uses 46.5 percent. DOE is the only user of non-potable water and the new fixed cost will be adjusted annually using the Consumer Price Index.

The term “potable water” means water that meets current and future federal and state drinking water standards applicable to municipalities, while “non-potable water” means water from the intake facility that has not been processed at the Water Treatment Facility located on Bear Creek Road and does not meet potable water standards.

City Manager Mark Watson told Council the city and DOE shares the Bear Creek Road water tank that used to be operated by DOE but was transferred to the city many years ago. He said the city and DOE officials have been discussing the contract since July and the city will see a "slight increase in net dollars" under the new contract.

"I think we developed a good plan and I recommend its adoption," Watson.